Advisers Tip:Consider What Value am i bringing to this relationship.
Why Wealthy investors are spurning advisers:
CoreData principal Andrew Inwood said the latest research showed the value that advisers can add to clients was being challenged.
“It’s very clear that the old role of providing value through ease of investing, basic planning and access to products and services has gone. High-net-worth investors now think they can provide this service for themselves.”
He added advisers were struggling to demonstrate the value of their services to clients.
“Many of the high-net-worth investors, having abandoned the idea that advice can add value, are looking for what they perceive as the cheapest option to provide generic services – and they are finding that in industry super,” Inwood said.
“It’s important to remember that one of the most strongly correlated things with wealth in Australia is owning all or part of a business – so a lot of these people are exposed on a regular basis to the performance, cost advantages and reporting of the industry funds,” he said.
Inwood added there was “clearly a group of advisers who managed the global financial crisis and their relationships very well – but they appear to be a minority”. He said that despite the need for advice in the HNW segment, the “vast bulk of advisers, it appears, were unable to display what they offered in terms of advice, planning, activity and communication”.
For the purposes of the research, HNW investors were classified as those with more than $1 million in investable assets outside of property and superannuation.
The research was based on 1,412 HNW investors and was conducted on February 4, 2010.
Consider what value you bring to a relationship ?
